An unfavorable volume variance means that a firm operated at an activity level that was below the activity level planned for the period.

Name: An unfavorable volume variance means that a firm operated at an activity level that was below the activity level planned for the period.
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Question

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An unfavorable volume variance is caused by operating at a level below the planned activity level, resulting in lower production and higher per-unit fixed costs, resulting in a negative variance.

An Unfavorable Volume Variance Means That a Firm Operated at an Activity